• 5 minutes China Faces Economic Collapse
  • 8 minutes ZeroHedge: Oil And Gas Bankruptcies To Accelerate As $137 Billion Debt Matures Over Next Two Years
  • 11 minutes Trump Will Win In 2020
  • 14 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 2 mins Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 20 mins The Belt & Road Initiative: A Wolf in Sheep's Clothing?
  • 12 hours How OPEC and OECD play their role in setting oil price in light of Iranian oil sanction ?? Does the world agree with Iran's oil sanctions ???
  • 9 hours Cost of oil
  • 5 hours Democrats and Gun Views
  • 19 hours Swedish Behavioral Scientist Suggests Eating Humans to ‘Save the Planet’ from Climate Change. What could possibly go wrong?
  • 2 hours USAvChina.com
  • 19 hours Trump Orders Biofuel Boost
  • 14 hours Iran says tanker oil sold at sea, buyer sets destination
  • 5 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 1 hour Iran in the world market
  • 23 hours Green New Deal Preview in Texas Town
  • 20 hours “Who’s going to bail out the Central Banks?”
Oil Prices May Slump Heavily In 2020

Oil Prices May Slump Heavily In 2020

OPEC has decided not to…

Total and CNOOC Agree to Build Crude Oil Refinery in Uganda

Having finally settled their differences Total and CNOOC have agreed deal with the government of Uganda to build a small oil refinery in the East African country.

Explorers initially found oil in 2006 but development of the fields were met with delays due to arguments over the taxes and the lack of local refineries. At the beginning of last year Total and CNOOC each bought a third of British explorer Tullow Oil's exploration assets for a total $2.9 billion, and they have now just agreed to construct a refinery with an initial capacity of 30,000 barrels a day.

President Yoweri Museveni made a public statement to announce that the two parties had “agreed to start with the refinery size of 30,000 barrels per day,” although he had been pushing for a 200,00 barrel a day facility.

Related article: Egypt Lacks Oil and Sense of Humor

Museveni now wants Total and CNOOC to sign a memorandum of understanding in order to add more security to the deal. “We have wasted too much time. We are now with the issue of oil for seven years. We need to make our final decisions,” he said.

The Ugandan government hoped to refine all the crude locally in order to increase the revenues, help fund new infrastructure projects, and provide cheaper energy to Africa’s third largest economy. However Total and CNOOC have decided that there is insufficient demand to warrant a large refinery, and instead will opt for building a pipeline to Kenya’s coastline from where the crude can be exported.

Uganda has an estimated 3.5 billion barrels of crude oil.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment
  • Okello Arthur on May 14 2013 said:
    GOOD PLAN FOR OUR COUNTRY.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play